ITIFUNDS

Ukraine security council chief sends mixed signals over electricity market reform

Ukraine security council chief sends mixed signals over electricity market reform
Ukraine's new National Security and Defence Council head Oleksandr Danylyuk says electricity market reforms should be postponed
By bne IntelliNews June 3, 2019

The scenario of launching the new electricity market from July 1, as envisaged by current legislation, is possible, despite the fact that the most part of participants in a meeting of Ukraine's National Security and Defence Council (NSDC) believe that the date for launching the new electricity market should be postponed, according to the NSDC's secretary Oleksandr Danylyuk.

The new market should start functioning in July. Under new regulations, power producers will be allowed to sell their electricity by bilateral contracts with consumers, on a day-ahead market, an intraday market and a balancing market.

This new market model should replace the existing one, in, which power producers are selling their electricity to a single buyer, the state-controlled company, based on predetermined prices (either fixed explicitly, or determined by a formula).

According t the official, under the scenario of launching the new electricity market from July 1, all responsible structures are obliged to "work every day" to reduce its possible negative impact on the country's economy.

Danylyuk added that President Volodymyr Zelenskiy gave two weeks to form a single position on the expediency of postponing the launch of the electricity market scheduled for July 1 and its consideration by the NSDC.

"Most of the participants agreed that the introduction of the law on the electricity market should be postponed. The question is for how long it should be postponed: for three months, for nine months, for 12 months. But there was also a position that there should be [respective] preparations as it will be eventually launched," Danylyuk added.

 

Data

Dismiss
ITIFUNDS